Taubert v. Earle

133 S.W.2d 145
CourtCourt of Appeals of Texas
DecidedOctober 13, 1939
DocketNo. 13963.
StatusPublished
Cited by14 cases

This text of 133 S.W.2d 145 (Taubert v. Earle) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taubert v. Earle, 133 S.W.2d 145 (Tex. Ct. App. 1939).

Opinion

BROWN, Justice.

This is a suit for damages which arose over the failure of appellants to comply with a drilling contract covering a small tract of land near the Bryson Townsite pool, in Jack County, Texas.

It must be conceded that the territory is what is known as a semi-proven area.

Appellee pleaded every conceivable measure of damages, to-wit, the cost of drill *146 ing a well, the value of his oil payment, provided for in the drilling contract, and the loss of his portion of the probable production, had the well been- drilled.

Since our Supreme Court has spoken in Fain-McGaha Oil Corporation v. Owens, 132 Tex. 109, 121 S.W.2d 982, and cited with express approval the opinion in Guardian Trust Company v. Brothers, Tex.Civ.App., 59 S.W.2d 343, 346, writ refused, we take it that the last mentioned measure of damages is all that may be considered here.

In the “Brothers” case, the following was said: “In the opinion in the former case [Texas Pacific Coal & Oil Co. v. Barker, 117 Tex. 418, 6 S.W.(2d) 1031, 60 A.L.R. 936], after quoting from many decisions holding that the best evidence of which the subject will admit is reasonable, and that expert witnesses acquainted with the field could testify with reasonable accuracy as to the loss in oil and gas production suffered by the lessor by the lessee’s failure to perform his contract, the rule for measuring the damages is announced in this plain language: ‘The amount and value of oil or gas production, obtained or obtainable through reasonable diligence, must be definitely alleged, and must be proven with reasonable certainty before damages may be allowed for breach of an express or implied covenant to continue the production of oil or gas, whether such damages result from failure to produce oil or gas or from loss of same by drainage.' ”

We do not believe that the evidence relied upon by appellee (plaintiff below) is sufficient to meet the rule so laid down.

The instrument which forms the basis for the suit by Earle is:

“May 31st, 1937.
“Mr. and Mrs. E. S. Earle
“Fort Worth, Texas.
“Dear Sir and Madam:
“With reference to the Mrs. D. A. Nichols 4-acre tract of land northwest of the townsite of Bryson in Jack County, Texas, upon which either or both'of you own an oil and gas lease, beg to advise you that, for a valuable consideratian already received by us, we agree as follows: ’
“That after sixty (60) days from the date hereof, at your demand, we will drill a well at our sole cost and expense, on the west 2½ acres of the 4-acre tract to the Bryson sand, using reasonable diligence and dispatch, unless said 2½ acre tract of land has been condemned within said sixty day period by an offset well; and by the word ‘condemned’ is meant that an offset well has been drilled within said sixty day period which is not capable of producing as much as thirty (30) barrels of oil per day for ten consecutive days after it has been completed. It being understood, however, that if no such offset well has been completed within said sixty day period, that then and in that event after said sixty day period, we will, on your demand, drill such well on said 2½ acre tract irrespective of the completion of any offset well. It is understood, however, of course that prior to the time that we are required to drill said well that you will assign your oil and gas lease on said 2½ acres to us; but in said assignment to us it is further agreed that you are to reserve an oil payment of $6000.00, payable as follows:
“Out of ¼⅛ of %ths of the production, as long as the well flows naturally. If, as, and' when the well ceases to flow naturally before the $6000.00 has been received by you, then your oil payment shall be out of %6ths of %ths of the production for a period of one (1) year after the date the well has ceased to flow naturally; and then out of ⅛⅛ of %ths of the production until you have received the full sum of $6000.00 in the manner and from the sources above mentioned. It being specifically understood that if. in the event the well does not flow naturally upon completion and it is necessary to place same on pump at the time of completion, the oil payment is to be cut of %6ths of %ths for a period of one (1) year from completion, and then out of ⅛⅛ of %ths until the full sum of $6000.00 has been received by you.
“It is understood too, that said payment of $6000.00 shall be in the nature of an overriding royalty and there shall be no personal obligation on the part of us to pay you said $6000.00, and no obligation on your part to pay any of the expenses whatsoever in producing said oil.
“It is further understood that we are to have an option on the balance of said 4-acre tract, which option must be exercised by us within sixty (60) days from the completion of the well above provided for.
“Our contract as to the balance of said 4-acre tract shall be on the same terms and conditions as on the 2½ acre tract, with the exception that the oil payment shall be $5000.00 instead of $6000.00, and *147 with the further exception that as to the balance of said tract we will commence drilling said well immediately, upon demand by you, after said option is exercised.
“Very truly yours,
“Taubert & McKee
“By: (Signed) Jesse McKee
“(Signed) Ed Taubert
“Accepted this 2 day of June, 1937.
“(Signed) E. S. Earle.”

The oil and gas lease which was to be assigned is in ordinary form. It does not specify any depth to which the well must be drilled, and the following clauses appear therein: “It is agreed that this lease shall remain in force for a term of one year from this date, and as long thereafter as oil or gas or either of them is produced from said land by lessee.” “In addition to the cash bonus paid, Lessors, or their order, are to be paid $250.00 per acre in oil out of of %ths of the oil produced from said 4 acres, if, as and when produced.”

The lease is dated January 6th, 1937.

It appears that a well was drilled on the above mentioned 4-acre tract in October, 1928, known as the “Shaw well”, and that it was abandoned shortly after it was completed, on the southeast portion of the said tract.

At the risk of being tedious, we think it best to give the substance of the testimony of some of the witnesses who were produced by appellee for the purpose of giving the jury some facts about the “Shaw well” and those on tracts lying in different directions from the 4 acre tract involved in this suit.

Mrs. D. A.

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Bluebook (online)
133 S.W.2d 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taubert-v-earle-texapp-1939.